CBA: Next year's goal is to keep inflation within target

In 2026, the main objective of the Central Bank of Azerbaijan's (CBA) monetary policy will be to keep inflation within the target range, Taleh Kazimov, Governor of the Central Bank of Azerbaijan (CBA), said during the first reading of the draft law on the State Budget for 2026 at today's plenary meeting of the Milli Majlis, Report informs.

According to him, as in previous years, managing inflation within the target will provide a foundation for both sustainable economic growth and financial stability:

"To this end, reforms in the monetary sphere will continue, and the analysis of inflationary factors and developments in financial markets will be deepened. By implementing monetary policy, the Central Bank will mainly focus on managing demand‑side factors of inflation. Joint efforts with the government will be made to effectively manage supply‑side factors."

Kazimov added that, according to the Central Bank's updated forecast issued in October, annual inflation in 2026 is expected to be 5.7%:

"Supply‑side factors are also expected to play a significant role in shaping inflation. Exchange rate stability will remain the main anchor of price stability in 2026. Forecasts suggest that next year the current account surplus in the balance of payments will support equilibrium in the currency market."

He further stated that, according to the Central Bank's October projections, under the baseline scenario, the current account surplus is expected to be around $3 billion by the end of 2026:

"When using monetary policy instruments, developments in financial markets and changes in the liquidity position of the banking system will be taken into account. Priorities in the financial sector will be implemented in line with the Financial Sector Development Strategy covering 2024–2026."